Cask Irish Whiskey – Investment Opportunity
It’s essential to understand the history of the market
The History of Irish Whiskey
Back in the early 1800s, did you know Ireland was the most significant spirit maker in the United Kingdom? By 1823, Dublin boasted the five largest distilleries in the country. They were the five largest distilleries in the world, with a combined output of around 10 million gallons each year.
Irish Whiskey production output increased fourfold between 1823 to 1900, becoming the most popular spirit in the world. By 1900, over 12 million cases of Irish Whiskey exported to over 100 countries around the globe.
What Happened to Irish Whiskey?
In 1887, there were only 28 of the 93 distilleries left in existence in Ireland.
By the 1930s, Irish Whiskey was to experience a complete reverse of fortune due to several factors: the War of Independence, the Great Depression, Prohibition in the US and the growth of the Economic War being some of the most significant reasons behind the demise of the Irish Whiskey industry.
The market experienced a 95% crash when Irish Whiskey exports fell from over 12,000,000 cases per year to an estimated 400,000 – 500,000 cases each year literally over several years.
The Resurgence of Irish Whiskey
From 1990, Irish Whiskey experienced a massive resurgence and has exploded in popularity. Over the past 29 years, Irish Whiskey has been the fastest-growing spirit in the world, with annual growth across the market of between 15-20%+.
As of 1954, the number of operating distilleries in Ireland was only four. Today, there over thirty fully operational distilleries. As of June 2019, the Irish Whiskey Association confirmed a further twenty-four distilleries are planned or under construction across the entire region.
In 2018, sales of Irish Whiskey stood at 10.7 million 9-litres cases, projected to exceed 12 million cases by 2020, eclipsing the current market record held for over a century since 1900.
The Investment Opportunity in Irish Whiskey
Irish Whiskey brands typically produce Whiskey exclusively for their private labels. As such, the opportunity to buy-into casks at the retail level is generally unavailable to individual investors.
Whiskey Business Club offers Cask Irish Whiskey investment opportunity, due to government legislation that new-make spirit produced cannot be sold until a minimum three (3) year maturation period is reached. Our investment opportunity allows private investors to purchase Cask Irish Whiskey to achieve a very secure and stable return on their capital after the minimum of three (3) year maturation period is complete.
A single cask of new-make spirit increases in value by 15%-20% per year. After completing the legal three (3) year maturation period, distilleries can offer a single barrel of Irish Whiskey @ double the original value of new-make spirit.
Why Invest in Irish Whiskey Casks?
Irish Whiskey is one of the fastest-growing spirits in the world, leading the export contribution of the drinks sector, contributing €10.5 billion in exports in 2014, 45% above 2009 levels with exports totalling over €12 billion today.
Growth of almost 200% over a decade reflects the Irish Whiskey market resurgence, and market experts predict the market to experience further 300% growth over the next decade. In 2014, more than 6.7 million 9-litre cases of Irish Whiskey exported to over 100 countries around the world. This year, the figure is due to exceed 12 million cases, and market experts predict to ship over 24 million cases by 2030. In 2010, there were only four distilleries in operation. Today, there are over thirty active distilleries, with another 30+ distilleries planned construction to meet the ever-growing demand.
In 2013, exports from the Irish Whiskey sector shows there was a €307 million return on investment, and represented a 28% of all beverage exports. The total across Ireland as a whole was almost €350 million, representing a 220% increase in exports from the sector over a decade.